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  • The Market Creates a Buying Opportunity

    Posted on October 5th, 2009 No comments

    A new week has begun, earnings season is around the corner and the market has corrected the perfect amount. I see this as a perfect buying opportunity and I’ve been building positions in multiple stocks which I will outline below. First we must ask why this is the best opportunity to buy? No one can be 100%¬†certain but I trust the technicals that I follow. I believe we have heavy support around 1000-1025 on the S&P and I don’t think our market can crack this point. If we do, all my bets are off and all my stops will be hit which is a minimal loss considering we are sitting at 1025 already.

    The stocks which I will be looking at most specifically are Citigroup (C)¬†and General Electric (GE). I like Citigroup at $4.25-45 and I love General Electric at $15.00-50. I’ve taken my first positions late on friday afternoon and I anticipate by the end of October the returns will be substantial. We may see-saw till mid October, but once mid October catches a drift, Citigroup should propell to $6 and General Electric should be at $19. There is one factor that sits in the way and might play against my technicals, and that is earnings. Both companies earn by mid month but since forecasts are fairly conservative, it will be difficult to negatively impact these stocks.

    Lets wait and see. Enjoy trading everyone!